6. Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis

   Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 7,200 units of product were as follows:

   	Standard Costs		Actual Costs
   Direct materials	9,400 lb. at $5.40		9,300 lb. at $5.20
   Direct labor	1,800 hrs. at $16.70		1,840 hrs. at $17.10
   Factory overhead	Rates per direct labor hr.,
   	based on 100% of normal
   	capacity of 1,880 direct
   	labor hrs.:
   		Variable cost, $3.00	$5,350 variable cost
   		Fixed cost, $4.70	$8,836 fixed cost

   Each unit requires 0.25 hour of direct labor.

   Required:

   a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

   Direct materials price variance	$
   Direct materials quantity variance
   Total direct materials cost variance	$

   b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

   Direct labor rate variance	$
   Direct labor time variance
   Total direct labor cost variance	$

   c. Determine variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

   Variable factory overhead controllable variance	$
   Fixed factory overhead volume variance
   Total factory overhead cost variance	$